Climate change is a global problem that cannot be easily resolved through conventional public economics tools, with dimensions of intergenerational equity and global collective action. This course aims to equip students with the economic logic needed to understand this problem. It examines, on the theoretical axis, how climate change is modeled through the frameworks of market failures, externalities, public goods theory, and uncertainty; on the policy axis, what instruments such as carbon taxes, emissions trading systems, and carbon border adjustments mean in terms of efficiency, distributional consequences, and political feasibility; and on the Turkey and international context axis, how these debates materialize both in Turkey's specific circumstances — its energy structure, trade relations, CBAM compliance process, and net-zero commitments — and within the broader international climate regime, Paris Agreement negotiations, and global carbon markets.

This course examines climate change as an economic problem, covering a broad framework that ranges from market failures, externalities, and public goods theory to carbon pricing instruments, international climate regimes, and the economics of adaptation. Theoretical discussions are supported by emission projections, carbon budget analysis, and damage estimation methodologies, while policy instruments such as carbon taxes and emissions trading systems are comparatively assessed in terms of efficiency and distributional effects. Turkey's emission profile, CBAM compliance process, TR-ETS design, and 2053 net-zero target are examined alongside the international context.